SEI Investments (SEIC) Stock Forecast & Price Target

SEI Investments demonstrates a strong positive outlook due to an increase in its institutional investors’ margin from 47.6% to 48.3%, highlighting improved profitability. The company is benefiting from a robust pipeline across various segments, particularly in private banking, and is strategically investing in talent and technology to enhance future growth, particularly in investment management services. Additionally, Stratos is experiencing a notable organic growth rate of approximately 10% in net flows and maintaining a substantial EBITDA margin of over 40%, underscoring SEI's operational efficiency and financial health.

SEI Investments has experienced a decline in operating margins across most business segments, with the overall margin decreasing from 28.5% in the previous quarter to 27.2%, reflecting challenges in maintaining profitability amid increased investments. The substantial drop in net sales events from $46.6 million to $29.2 million in 2Q25 further highlights the weakening of sales momentum, indicating potential difficulties in revenue generation moving forward. Additionally, revised earnings per share estimates for 2025 and 2026 have been lowered to $4.96 and $5.46, respectively, as higher assets under management have not compensated for the decline in margins, leading to a cautious outlook for the firm's profitability.